Implementation of the Federal Managers' Financial Integrity Act

GAO summarized the results of its governmentwide review of agencies' efforts to implement the Federal Managers' Financial Integrity Act, which is aimed at strengthening internal control and accounting systems.

GAO found that the agencies made a good start in the first year in assessing their internal control and accounting systems, and have demonstrated management commitment to implementing the act. In addition, agencies are establishing a systematic process to evaluate, improve, and report on their systems, and federal managers are more aware of the need for good internal control systems and improved accounting systems. The Office of Management and Budget (OMB) provided guidance and central direction to the program. Further, most inspectors general played a major role in the program. However, the agencies' reports disclosed material internal control and accounting system problems, many of which have been long standing and the subject of prior GAO and inspector general reports. GAO found that: (1) 16 agencies reported material weaknesses in accounting and financial management systems; (2) 8 agencies reported material weaknesses in eligibility and entitlement determinations; (3) 12 agencies reported weaknesses in grant, loan, and debt collection management; (4) 14 agencies reported procurement weaknesses; (5) 13 agencies reported material weaknesses in property management; (6) 10 agencies reported weaknesses in automatic data processing (ADP); (7) 12 agencies reported weaknesses in cash management; and (8) 9 agencies reported problems in personnel and organizational management.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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